Dec 4 (Reuters) – Jack Daniel’s maker Brown-Forman on Thursday beat Wall Street estimates for quarterly sales and maintained its annual forecasts as the company banks on demand for its whiskeys in emerging markets to offset softness in the U.S.
Steady growth in its travel retail channel as well as in key emerging markets such as Brazil and Turkey, helped cushion a persistent weakness in demand in the U.S. and other developed markets.
The company’s shares were up about 5% in early trading. They have dropped nearly 21% so far this year.
Brown-Forman is also banking on its extensive restructuring program, announced earlier this year, to help reduce costs, and streamline its operations.
Sales for second quarter fell 5% to $1.04 billion from a year ago, but beat analysts’ estimate of $1.02 billion, according to data compiled by LSEG.
A higher cost of living and macroeconomic uncertainty in the U.S., arising from the Trump administration’s volatile trade policy has caused consumers to temper spending on pricier discretionary products such as high-end alcohol.
The boycott of American-made goods in Canada, which took key whiskey brands off the shelves in the country, hurt Brown-Forman’s sales in the first half of fiscal 2026, the company said.
Weak demand for Jack Daniel’s Tennessee Whiskey in key markets such as Germany and the United Kingdom led to a 4% decline in the developed international markets region – which accounts for nearly 29% of its total sales – in the six-month period ended October 31.
“We continue to anticipate the operating environment for fiscal 2026 to be challenging, with low visibility due to macroeconomic and geopolitical volatility as we face headwinds from consumer uncertainty and lower non-branded sales of used barrels,” Brown-Forman said in a statement.
Net income for the reported quarter fell 13% to $224 million from a year ago.
(Reporting by Juveria Tabassum and Sanskriti Shekhar in Bengaluru; Editing by Shailesh Kuber)
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